5 Things That Run Business Partnerships (And How You Can Avoid Them)

Starting a business with someone can be exciting. You have someone to share ideas with, divide the work, and build something together. But things don’t always go as planned. In fact, many partnerships fall apart—not because the idea was bad, but because the people couldn’t get along anymore.

Here are five common reasons why business partnerships break and what you can do to stop them from happening.

1. Nobody Knows Who’s Doing What

This happens a lot. Two people start working together, but they never clearly say who is in charge of what. One person thinks the other is handling sales. The other thinks the first person is doing it. In the end, nothing gets done—or worse, the same thing gets done twice.

How to avoid it:

Just talk about it. Sit down and decide who is responsible for what. Make it clear. One of you handles customers, and the other does the accounting? Perfect. Write it all down. It would be beneficial to include it in a business partnership agreement to avoid any confusion in the future.

2. Money Problems and Unfair Workload

Money can break friendships fast. Maybe one partner puts in more cash. The other says they’re working more hours. Now they’re both annoyed. Perhaps one of you wants to reinvest in the business, while the other prefers to withdraw profits.

How to avoid it:

Talk about money before it becomes a problem. Agree on how much each of you will invest. Set clear rules on how you’ll split profits and expenses. Don’t rely solely on luck. Make sure it’s written clearly in your business partnership agreement.

3. Poor Communication

This one sneaks up on people. You’re busy. Your partner’s busy. Weeks go by and you’re not really talking. One of you makes a decision without telling the other. Trust starts to break down.

How to avoid it:

Make time to talk. Ensure to schedule a conversation at least once a week. A 20-minute phone call can stop problems before they get big. Be honest. Please share what is working well and what might need improvement. The more you talk, the stronger the partnership becomes.

4. Different Goals

Let’s say you want to grow rapidly, open shops in new cities, and maybe even go global. But your partner just wants to make a steady income and keep things small. Now what? You’re in conflict with each other.

How to avoid it:

Have the tough conversation early. Ask each other:
“Where do you want this business to go in the next few years?”
If you don’t want the same things, that’s okay—but you need to know that from the start. You can even write your shared goals into your business partnership agreement so both of you stay on the same page.

5. No Written Agreement

This is the biggest mistake. Many friends or family members go into business together without anything on paper. They say, “We trust each other. We don’t need a contract.” But when things get messy, there’s nothing to fall back on.

How to avoid it:

Make a business partnership agreement. Seriously. It doesn’t mean you don’t trust each other—it means you’re smart. It should say:

• Who does what
• How you split profits
• What happens if someone wants to leave?
• How do you resolve disagreements?

You don’t need fancy legal talk. All you need are clear, honest terms that both of you can agree upon.

Quick Bonus: Think About “What If”

What if one of you gets sick? What if one wants to quit? What if the business fails? These are not fun things to talk about, but they’re important.

A good agreement should cover these situations too. It’s like an insurance plan for your partnership.

Final Thoughts

A good business idea is not enough. The real test is how well the people behind it can work together. Most partnerships fail because the basics were never handled right—things like communication, money, or simple planning.

If you’re starting a business with someone, slow down and do it properly:

• Talk honestly.
• Write things down
• Plan for the tough stuff
• Please ensure a business partnership agreement is established.

It might not feel urgent right now, but later, you’ll be glad you did.